Short answer
Southwest Airlines (LUV) filed its fiscal 2025 10-K annual report with the SEC on Feb 5, 2026. It reported revenue of $28.1B (+2.1% year over year) and net income of $441M.
- Top risk flagged: Cybersecurity risks actively overseen by Board and Audit Committee, with escalations for incidents meeting specific thresholds
FY2025 key financial metrics · XBRL
- Revenue
- $28.1B
- +2.1% YoY
- Net income
- $441M
- −5.2% YoY
- Operating margin
- 1.5%
- +0.4 pp YoY
- EPS (diluted)
- $0.79
- +3.9% YoY
- ROE
- 5.5%
- +1.0 pp YoY
- Operating cash flow
- $1.8B
- +298.7% YoY
Source: XBRL data from the Southwest Airlines (LUV) FY2025 10-K on SEC EDGAR. USD.
Southwest Airlines FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: Low-cost U.S. and near-international passenger airline operating a large fleet of Boeing 737 aircraft
- New initiatives: Introduced assigned and extra legroom seating, redesigned boarding model, launched global airline partnerships, and created Getaways vacation packages in 2025-2026
- Strategic shift: Expanded redeye flights for 24-hour operations and rebalanced network toward longer-haul routes, reducing short-haul and off-peak service
- Quantitative metric: Fleet size 803 Boeing 737 aircraft; increased asset utilization with 55 new -8 aircraft added and retirement of 55 less fuel-efficient planes in 2025
- Noteworthy fact: Terminated all remaining fuel hedging contracts in Q2 2025, closing fuel hedge portfolio scheduled through 2027
Management Discussion & Analysis
- Revenue $28.1B in 2025, up 2.1% YoY ($580M increase), passenger revenue $25.5B, up 2.2% YoY ($555M increase)
- GAAP operating income $428M in 2025 vs $321M in 2024, margin 1.53% vs 1.17%; non-GAAP operating income $539M vs $457M, margin approx. 1.92% vs 1.66%
- Best segment: Passenger revenues growth $555M; worst segment: Freight revenue down $4M (-2.3%)
- Net cash from operations $1.8B in 2025 vs $462M in 2024; $399M dividends paid; $2.6B share repurchases; capex $2.7B, up from $2.1B
- 2026 outlook: Capital spending $3.0-$3.5B for 66 MAX deliveries; focus on operational improvements, assigned seating rollout, fleet modernization, key risks include Boeing delivery delays and labor negotiations
Risk Factors
- Cybersecurity risks actively overseen by Board and Audit Committee, with escalations for incidents meeting specific thresholds
- Dedicated cybersecurity team led by CISO with 19 years experience, focusing on vulnerability management and incident response
- Potential operational disruption from cybersecurity incidents affecting facilities, airports, and aircraft systems
- Reporting cadence includes regular briefings and reviews of business continuity and disaster recovery plans
- Cybersecurity risks integrated into technology strategy with engagement from senior leaders including CIO with 20+ years IT experience
Generated from the filing text; verify against the original. How to read a 10-K
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